Banking has changed since the global financial crisis in 2008. The steady increase in regulations from Washington, the states and international organizations are now impacting IT leaders. As regulators examine vendor relationships and outsourcing arrangements more closely, there is a significant risk that poorly managed IT could trigger an audit finding, a fine or negative publicity. As IT leaders plan to review and renew IT service providers in 2016, here are some of the risks to manage.

Quotes

The OCC is concerned that the quality of risk management over third-party relationships may not be keeping pace with the level of risk and complexity of these relationships.

We see several common mistakes when it comes to outsourcing arrangements.

We have seen certain major financial institutions being caught off guard with severe disruptions during the reason historic floods in Chennai, India.

Some regulators are working with some of the large advisory firms on developing more stringent guidelines.

We have enhanced the training we do on our side. The internal training program shows our teams what is required in documentation, audit requirements and privacy. Before we assign staff to a financial services clients, they have to pass internal tests and certifications.

For a regional bank in the U.S., we are performing part of their mortgage process. Initially, it was a broken process that took a long time to onboard customers. We used a design thinking approach to transform the process. The result: onboarding now takes two days instead of over 30 days.